Step-by-Step Analysis of the "Forest-to-Tree" Stock Selection Method

In stock market studies, we introduced the "Tree-Planting Theory," which led to the "Forest-to-Tree" stock selection approach. But what are the specific steps of this method? Below, the chief editor of Winner’s Academy explains in detail.

Step 1: Assess the Overall Market Trend
The market significantly impacts individual stocks. If the broader trend is weak, even fundamentally strong stocks should be approached cautiously by retail investors. Since stocks rarely defy the market’s direction, success rates drop markedly during downturns.

Step 2: Identify Sector Trends
This step involves analyzing which industries or sectors show breakout potential. A critical point: two stocks with similar patterns may perform vastly differently if their sectors diverge. Selecting the right industry and trending sectors is key to successful trading.

Step 3: Pick Stocks with the Best Technical Patterns
After meeting the first two criteria, focus on stocks whose technical charts signal optimal entry points. Under identical conditions, stocks with the strongest technical setups offer higher upside potential. For instance, in current markets, lacking a clear strategy leads to losses, while applying sound principles—like selecting 5G or venture capital stocks and using "price-time resonance analysis"—could capture opportunities like Minfeng Special Paper’s涨停 surge.

By following these steps, you’ll hold high-performing stocks in bullish markets and preserve capital safely during bearish phases. Investors should adapt the approach to their trading style. For stocks related to the "Healthy China" concept, click here to explore. Happy investing!